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GM, Ford halt some production as chip shortage worsens

Explainer Worsening Chip Shortage
Posted at 4:10 PM, Sep 02, 2021
and last updated 2021-09-02 16:10:21-04

DETROIT (AP) — The global shortage of computer chips is getting worse, forcing automakers to temporarily close factories including those that build popular pickup trucks.

General Motors announced Thursday that it would pause production at eight North American plants during the next two weeks, including two that make the company's top-selling Chevrolet Silverado pickup.

According to the Associated Press, starting Monday, GM will close its plants in Fort Wayne, Indiana, and Silao, Mexico, for a week, a plant in Wentzville, Missouri, for two weeks, and other plants could be closed for two or more weeks.

Ford will stop making pickups at its Kansas City Assembly Plant for the next two weeks.

Shifts will be cut at two more truck plants in Dearborn, Michigan, and Louisville, Kentucky.

Industry analysts say the delta variant of the novel coronavirus has hit employees at chip factories in southeast Asia hard, forcing some plants to close.

That's worsened a chip shortage that was starting to improve earlier in the summer.

Ford and GM aren't the only car makers having to shut down plants due to the chip shortage.

Stellantis closed a plant in Sterling Heights, Michigan this week and its plants in Belvidere, Illinois and Windsor, Ontario will be closed for two weeks.

Nissan, which shutdown its plant in Smyrna, Tennessee, for two weeks until Aug. 30, has now pushed the closure back to four weeks, until Sept. 13.